Sligo Toys Ltd manufactures one type of wooden toy figure. It buys wood as its direct material for the Forming Department of its Ballinode plant. The toys are transferred to the Finishing Department, where they are hand-shaped and metal is added to them. Sligo Toys uses the weighted-average method of process costing. Consider the following data for the Forming Department in April 2018:

Required
1. Summarise the total Forming Department costs for April 2018, and assign these costs to units completed (and transferred out) and to units in closing work in progress using the weighted-average method.
2. Prepare a set of summarised journal entries for all April transactions affecting Work in Progress – Forming. Set up a T-account for Work in Progress – Forming and post the entries to it.

Transcribed Image Text:

Physical units (missiles) Direct Conversion materials costs Work in progress, 1 April* 300 €7 500 €2 125 Started during April 2 200 Completed during April 2 000 Work in progress, 30 April Costs added during April 500 €70 000 €42 500 * Degree of completion: direct materials, 100%; conversion costs, 40%. 1 Degree of completion: direct materials, 100%; conversion costs, 25%.